FE Online Magazine - Fall 2022

SKYLINE LIVING'S R.I.S.E. PROGRAM

FAST-TRACK ENERGY EFFICIENCY WITH INCENTIVES

2022 FRPO CHARITY GOLF CLASSIC

Creating More Housing Supply

As

summer winds down and we head into fall we are grateful for the upward trend we have seen over the past few months! We brought back our Annual Golf Charity Classic, Women in Rental Housing and look forward to our MAC Awards Gala taking place at the beginning of December.

Let’s Build Ontario Update

The Let’s Build Ontario campaign is focused on building Ontario residents’ support to provide balance in the online conversation around the rental housing crisis and push for the need for more supply. To date, we have more than 2,700 supporters from every corner of the province. With this new phase of the campaign, we are using our rapid response efforts to ensure that the narrative on rental housing does not turn into a blame game, but rather focuses on a collaborative approach between all levels of government, activists, residents and rental-housing providers to find solutions to the crisis together.

With the upcoming municipal election right around the corner, we are focused on having FRPO members reach out to candidates with a questionnaire on the state of the rental housing market to set a foundation for a collaborative approach to creating more supply in Ontario.

TONY IRWIN President & CEO FRPO

Showroom

EVENTS

PM EXPO AT THE BUILDINGS SHOW

Date and Time: November 30 to December 2, 2022

8:00 am - 4:00 pm

Supported by TCA, BOMA, BILD, Concrete Ontario, and CABA, The Buildings Show, comprised of Construct Canada, PM Expo, HomeBuilder & Renovator Expo, and World of Concrete Toronto Pavilion, is back in-person from Nov. 30 - Dec. 2, 2022. For over 30 years, The Buildings Show has provided a unique platform for the industry to see first-hand a complete overview of the built environment.

2022 MAC AWARDS GALA

Date and Time: December 1, 2022 5:00 pm - 9:00 pm

The MAC Awards is the most important annual event for our members and recognizes the leaders in Ontario’s vibrant rental housing industry. These prestigious awards highlight excellence in a variety of categories including customer service, construction, sustainability, marketing, and personnel. Find out more about these awards by visiting www.frpomacawards.com

This year’s Awards Gala will take place on Thursday, December 1 in conjunction with The Buildings Show at the Metro Toronto Convention Centre. More information about this event will be provided this summer/fall. We can’t wait to see everyone back in person to celebrate the ‘best in the business’ this December.

PM SPRINGFEST

Date and Time: April 20, 2023

8:00 am - 4:00 pm

PM Springfest is the one-stop shop for everything you need to address your building's challenges. Property management professionals and building owners can rely on PM Springfest for the latest information about regulatory changes and health & safety strategies to energy management products/ services and retrofitting aging structures. The show provides an inside look at the newest innovations that help you deal with difficult tenants or harder-to-manage properties!

Join expert-led conversations

Get expert insight from industry professionals through BOMI-accredited seminars, roundtables, and more. Expand your knowledge base and gain an inside look into what's happening in our industry today and how it will change tomorrow!

Browse the exhibit floor

PM Springfest selects the most interesting and valuable suppliers in the industry to ensure that you build relationships to help you manage and operate your buildings. See who's participating and where they are on the exhibit floor.

Meet new suppliers

For the past two decades, PM Springfest has been a unique event for suppliers and property managers to meet. This year's event will be no different as we bring the property management industry together again for a day of networking, sourcing, and learning.

See the latest innovations

PM Springfest showcases the most cuttingedge products and PropTech innovations to help you improve the performance of your buildings while saving time and money.

GOVERNMENT RELATIONS UPDATE

By Tony Irwin, President & CEO, Federation of Rental-Housing Providers of Ontario

With the June 2nd Ontario provincial election behind us, FRPO spent the summer re-engaging with the Ford government as the Premier began to execute on his new mandate and implement the government’s agenda. FRPO President & CEO Tony Irwin was an invited guest at the swearing in of the new Cabinet and the opening of the legislature and speech from the Throne entitled, “Let’s Build Ontario.” That sounds familiar!

Over the past two months, FRPO met with the Associate Minister of Housing, a new Cabinet position created by the Premier signaling the government’s commitment to fulfilling its campaign promise to build 1.5 million homes over the next 10 years. Minister Parsa is eager to roll up his sleeves and get to work with all stakeholders including FRPO to get shovels in the ground on more purpose-built rental housing projects. FRPO is advocating for a seat on the recently announced Housing Supply Action Plan Implementation Team being chaired by Windsor Mayor Drew Dilkens. We expect the other members to be appointed soon.

FRPO also met with the Attorney General of Ontario to discuss urgently needed reforms to the Landlord & Tenant Board and the Ontario Land Tribunal. Attorney General Downey was very receptive to our input and committed to working with rental housing providers to achieve a fair and balanced system that prioritizes timely access to justice.

In addition to these meetings, FRPO has engaged with the Minister of Municipal Affairs, Hon. Steve Clark, as

well as several other elected officials and staff to discuss issues related to supply and the operating climate for rental housing providers. As is the case after every election, FRPO will reach out to newly elected MPPs in the fall and request meetings and we are looking forward to bringing back our industry advocacy day at Queen’s Park, so stay tuned!

Summer has been a busy time for advocacy, and we expect that to continue to press on through the fall, as housing issues continue to be top of mind formany people. FRPO will also be monitoring the upcoming municipal elections and offering our assistance to our regional association partners. This will include monitoring election platforms of mayoral candidates and sharing that with our rental housing provider members so they can make informed decisions when choosing their elected officials for the next four years.

We appreciate the support of our members and encourage you to reach out with any questions or concerns.

CHARITY

GOLF CLASSIC

FRPO members tee up in support of Interval House

Platinum Sponsors

Woodbridge, Ontario – This year's FRPO Charity Golf Classic took place on July 18th at the Country Club in support of Interval House. Over 300 members enjoyed a fun-filled day of networking and golf for a great cause. All guests had the opportunity to meet and be photographed with former Toronto Maple Leaf, Jeff O'Neill who joined the Byng Group to show his support.

We are proud to announce that this year's tournament raised $63,000 to support the women and children fleeing from intimate partner violence. Thank you to our members, sponsors and volunteers who made this event a tremendous success. FRPO is proud to work with Interval House and since 2007, has raised almost $800,000 to support the centre.

FRPO Charity Golf Classic Raises $63,000 for Interval House

2022 Golf Tournament held at The Country Club on July 18th

Interval House

As the first centre for abused women and children in Canada, Interval House is a leader in the campaign for women’s empowerment, providing innovative specialized services that help abused women and their children transform their lives and break the cycle of violence. Interval House’s holistic approach provides a continuum of services from crisis intervention to re-integration into the workforce and community, giving women and children the chance to rebuild their lives. For more information visit www.intervalhouse.ca

Thank You to our sponsors

Gold Sponsors

Silver Sponsors

C O V I D 1 9 S A F E T Y A W A R E N E S S

W e f o l l o w s t r i c t s a f e t y p r e c a u t i o n s w i t h a f o c u s o n s a n i t i z a t i o n , p e r s o n a l p r o t e c t i v e e q u i p m e n t a n d p h y s i c a l d i s t a n c i n g .

P A C B u i l d i n g G r o u p i s a f u l l s e r v i c e G e n e r a l C o n t r a c t i n g f i r m s e r v i c i n g S o u t h e r n O n t a r i o , M o n t r e a l a n d O t t a w a r e g i o n s . W e d e l i v e r c o m p r e h e n s i v e b u i l d i n g s o l u t i o n s f o r a l l p r o j e c t t y p e s . W e p a r t n e r w i t h o u r c l i e n t s t o u n d e r s t a n d t h e i r g o a l s a n d i n t e r p r e t t h e i r v i s i o n , b u i l d i n g s p a c e s t h a t a r e d i s t i n c t l y s u i t e d f o r e a c h e n v i r o n m e n t . W i t h a n i n t e g r a t e d a p p r o a c h a n d s e a m l e s s p r o c e s s , w e o u t p a c e t r a d i t i o n a l e x p e c t a t i o n s .

C O M M O N - A R E A S b u i l d i n g e n v e l o p e

A M E N I T Y S P A C E S s u i t e r e n o v a t i o n s

ONTARIO RENT INCREASES – THE

By John Dickie, President, Canadian Federation of Apartment Associations

Over the last few weeks, there have been numerous media stories about higher rents, based on reports from software companies that list units for rent. Those reports are alarmist. However, they reflect a limited sample of asking rents in specific secondary rental markets. The listing services almost certainly do not know the agreed rents. Despite the media hype around them, those reports do not reflect the reality of rents in purpose-built rental sectors of most Ontario cities.

Unfortunately, CMHC does not issue regular rental data apart from its survey of rents in October each year, which is published in December or January.

However, the rental housing sector now has data available more quickly and more often, which covers a large sample within the purpose-built rental sector. Yardi Canada is producing quarterly reports for many Census Metropolitan Areas (CMAs). Nationwide, Yardi is reporting on agreed rents for more than 300,000 rental units in the purpose-built rental sector.

In its new “Canada National Multifamily Report”, Yardi provides insights on the economy and reports on what it calls “in-place rents” for all of its clients (other than a limited number of clients in specific areas where they could be identified if data for their locations were reported). In-place rents are the average rent of all rented units, including both renewals and new leases for all unit sizes. (At any time in Ontario, well over 90 per cent of tenancies have been in place for many months or years. We can reasonably assume that the unit size mix of Yardi’s clients in each CMA will change very little from quarter to quarter or year to year.)

In reviewing the reported increases for average in-place rents, one should consider the overall rate of inflation experienced in Ontario. From June 2021 to June 2022, the rate of inflation was 8.1 per cent, up from 6.7 per cent between March 2021 and March 2022. In addition, for many rental providers, costs increased more than the overall rate of inflation. Think of natural gas and insurance as examples.

THE

Table 1: In-place rents for Q1 and Q2, 2022

Census Metropolitan area (CMa)

average rent inCrease over 12 Months average rent to Q1 to Q2 Q2

(Jan – Mar 2022) (apr – Jun 2022) (apr – Jun 2022, all unit sizes)

toronto 2.4% 3.6%

ottawa gatineau 3.2% 3.8%

haMilton 5.1% 6.2%

london 4.3% 4.7%

$1,550

$1,230

$1,300

$1,170

KitChener-CaMbridge waterloo 3.2% 3.2% $1,380

See Table 1 for the average rent increases in Ontario’s major CMAs. Toronto experienced an average rent increase of 2.4 per cent for the 12 months to Q1 (January to March 2022), and an average increase of 3.6 per cent for the 12 months to Q2 (April to June 2022). Both of those average increases were less than half the rate of inflation.

In fact, across Ontario cities, all average rent increases are significantly less than the rate of inflation. It was also much less than has been reported by some listing services for some limited samples of asking rents in the secondary markets.

CFAA welcomes the Yardi National Multifamily Report as a much-needed source of accurate data on rents and rent increases in the purpose-built rental sector.

FRPO is a founding member of the Canadian Federation of Apartment Associations (CFAA), which represents Canada’s rental housing industry at the federal level with the support of 14 member associations and many direct members.

By Vinicius Vilhena, Director of Business Development, Wyse Meter Solutions

EVSTART is charging across Canada – looking to help Canadian multi-residential properties prepare for an electric vehicle (EV) future.

This summer and fall, the EVSTART Charging Coast to Coast Tour stopped off at more than 40 multi-residential buildings across the country, educating owners on how simple and cost-effective it can be to install EV chargers to attract and retain sustainability-minded residents.

“This is the first-ever tour designed specifically for multi-residential properties,” said Peter Mills, CEO, Wyse Meter Solutions. “We know that 80 per cent of EV charging takes place at home. As our metro areas grow and increase in density, that will

place incredible demand on – and provide countless opportunities for – multi-residential properties across the country to be part of an electric future. We’re excited to use this tour as our way of helping build out Canada’s charging infrastructure.”

Right now, owners are making key decisions about how to provide reliable EV charging solutions to future residents and visitors. For many, this decision-making process has required a rapid education – exploring these complex systems, Mills said.

However, the tour has been organized, in part, to show exactly how streamlined the process can be and how quickly it can get their properties ready. Mills said the process for building owners breaks down into five steps:

1. Utility-grade site audit/drawings review to confirm electrical capacity and charger deployment requirements

2. Agree on customized optimal infrastructure solution

3. Proposal to address all key areas for both resident and visitor parking

4. Installation process

5. Ongoing billing, load management, and maintenance services

“We always encourage owners to start with a utility-grade audit to get a baseline of the building’s current infrastructure and capacity,” Mills continued. “With the latest EV technology, owners can start installing chargers right away without exceeding their load capacity by using tools like load management. Once those first chargers are installed, then owners can tap

into the data they generate to evaluate their building’s future and plan out its future EV needs.”

The key to success is finding an experienced partner to guide owners along every step, from access to the latest technology and flexible financial options and incentive funding to first-class resident service and industry expertise.

As for the EVSTART Charging Coast to Coast Tour, the timing couldn’t be better. EVs are already making a huge impact in Canada:

In Q1 2022, EV sales registered the highest number of vehicles ever in a single quarter. EV sales in Canada reached 5.8% in Q1 2022, a sizeable increase from the 4.2% in the final quarter 2021. (IHS Markit, 2022)

Federal incentives of $5,000 are inspiring purchases of new EVs, especially when combined with additional provincial incentives. In Quebec, for example, the EV Provincial Rebate can reach $7,000. In BC, the rebate was recently raised to $4,000. In Nova Scotia, incentives can reach as high as $3,000. (Province of Quebec, Province of British Columbia, Province of Nova Scotia, 2022)

The Government of Canada has dedicated $680 million to the installation of EV charging infrastructure in public spaces, workplaces, fleet vehicle support, and multi-unit residential buildings. Through its Zero Emission Vehicle Infrastructure Program (ZEVIP), the government will fund 50% of project costs up to a maximum based on charger output, from $5,000 for 19.2 kW (and under) chargers to $100,000 for 200-plus kW chargers. (Government of Canada, 2022)

More than 150,000 Canadians and Canadian businesses have benefited from ZEVIP incentives. Those incentives have helped reduce up to 519,000 tonnes of greenhouse gases per year (or 6.2 million tonnes over the lifetime of these vehicles). This is equivalent to powering more than 1.4 million homes for one year, and we are just getting started. (Government of Canada, 2022)

As gas prices rose throughout the year, EV ownership showed off its significant saving possibilities. An average Canadian who drives 15,200 km annually will spend more than $1,500 in gas; however, an EV owner would spend less than $300 for the same distance. (Driving.ca.)

and more decisions about where

on-site

an electric vehicle

Mills

come down to what buildings

important that we educate residents

The

Government charges on residential

By Angelina Ritacco, Briefings Sector Operations, Canada Mortgage and Housing Corporation

CMHC’s

Housing Market Insight Report: Government Charges on Residential Development in Canada's Largest Metropolitan Areas explores how government charges impact construction costs within and across Canada’s largest metropolitan areas: Vancouver, Toronto, and Montréal.

This review shows the number and magnitude of these charges vary substantially by municipality. This may signal important differences in processes and approaches. By equipping governments and industry participants with this information, we hope to generate discussions among them around best practices for delivering housing units in a timely and cost-effective manner.

Housing supply is a key issue in Canada’s housing affordability crisis

Housing affordability is a complex, multi-faceted issue. It can’t be solved with one solution. But we can look at different problems and solutions one at a time to gain a better understanding of the challenges. This can help advance holistic approaches to addressing housing affordability.

This report builds on our understanding of government charges and input costs associated with producing new housing. There are several costs — like land and construction — associated with producing new housing. Some input costs are the fees levied by governments. The collection and administration of such fees introduce two main challenges.

These fees add a direct cost to the production of housing

Government fees may add complexity and uncertainty to the development process as construction timelines hinge upon the successful collection of fees.

This insight examines the number, complexity, and cost of government fees for six development scenarios in Vancouver, Toronto, and Montréal. These Census Metropolitan Areas have seen the highest housing demand and affordability pressures in Canada — especially Toronto and Vancouver, where affordability challenges have been ongoing.

Understanding cost variations across municipalities, dwelling types, and tenures may identify examples of policies that result in housing being supplied at a lower cost.

This understanding may result in lower fees and simpler processes that reduce risk and uncertainty in the development process. The findings or practices uncovered in this insight may inform policymakers and be adapted to other jurisdictions.

residential development in Canada

Housing price reflects the equilibrium of supply and demand

In this study, we focused on the supply side. This means all input costs involved in developing the housing unit were examined. These input costs can be broadly categorized as follows:

Land costs

Hard construction costs

Soft construction costs

Developer profit

Government charges

Defining government charges on new development

Government charges for new development have a variety of purposes. Some are designed to recover the cost of providing services to the new building — like water and sewer — while others are used to raise revenue for broader amenities or public goods in the community.

In this report, government charges are broadly categorized as follows:

Warranty fees

Municipal fees

Development charges

Density payments

Permit fees

These charges vary by jurisdiction and should not be considered an exhaustive list. They represent one of the few channels for municipalities to raise revenues.

Lowering input costs — specifically government charges — would require broader changes by municipalities to maintain the current level of municipal services.

Highlights from our analysis

The number and magnitude of government charges on residential development vary substantially by municipality. This signals differences in processes and approaches across centres and presents an opportunity to identify best practices.

At the upper end, government charges can represent more than 20 per cent of the cost of building a home in major Canadian cities. Charges were found to be highest in the City of Vancouver and the City of Toronto and lowest in the City of Montréal.

A larger number of government charges were associated with a longer development approval timeline. The primary implication of a longer timeline is the slower provision of new housing supply to market and the people needing it.

Once a subdivision agreement is registered, the single-detached home tends to be the housing type subject to the lowest government fees. This seems to run contrary to densification efforts being pursued by municipalities, which are necessary to increase housing supply within existing urban areas.

Our findings suggest the following opportunities for housing policy discussion:

Increase certainty around the number, timing, and magnitude of government fees to improve housing affordability by decreasing other development costs, such as those for construction (e.g., labour, equipment) and financing.

Further align government fees on development with other housing policy goals. We identified examples where municipalities had lower fees for rental apartment development, which aligned well with what those governments wanted to promote. These efforts could be reinforced by making fees higher for less dense development, such as single-detached homes, or ensuring that denser housing forms that could be built on the same lot carried lower fees.

Eliminate density payments payable upon spot rezoning. These payments can be subject to negotiation, which introduces complexity and uncertainty. The amount levied is often linked to the change in the value of the site pending rezoning or additional density being permitted on a site.

Eliminate some steps of the development process, such as spot rezoning, to decrease the time and cost of delivering new housing. For example, in areas with an Official Community Plan, sites could be pre-zoned to permit the density and typologies consistent with the plan.

Explore alternate tools for municipalities to raise revenue to fund municipal services and capital projects. Where infrastructure is largely funded through means other than development charges, government fees on residential development tend to be comparatively lower. This may result in new housing being delivered at a lower cost.

“Yardi Investment Manager has been a critical element of Baceline’s ability to grow our investor base and scale our investor relations department. The level of comprehensive, dynamic investment data brings confidence to our investors and credibility to our business.”

BACELINE INVESTMENTS

Lindsey Reevie Partner

Investments grow on Yardi

By Chloe Hill,

A young married couple received the devastating news that the wife had cancer and a prognosis of only four months to live.

A man suffered a debilitating work accident and was diagnosed with acquired brain injury (ABI), incurring overwhelming medical expenses.

A single mother of two young children had fled an abusive relationship and was having financial challenges due to her diagnosis of Addison’s disease and related health issues.

Each of these is a real situation experienced by a Skyline Living tenant, causing them to struggle to make ends meet.

In each of these scenarios, the tenant faced an unforeseen life challenge and was suddenly at risk of losing the place they called home. Skyline Living has not only saved these tenants’ homes (and the homes of approximately 650 more tenants) but also worked with them to ensure they maintain their housing stability for the long term. These efforts resulted in Skyline Living receiving the first-ever FRPO Impact award, which was added to the list of FRPO MAC award categories in 2021.

The Impact award acknowledges a rental housing provider in Ontario who has achieved exceptional social impacts through one initiative or project. For Skyline Living, that project was its R.I.S.E. (Reach, Impact, Support, Elevate) program. R.I.S.E. provides tenant resources and support services, as well as a dedicated financial relief fund, to tenants who have fallen upon hard times through no fault of their own.

R.I.S.E. was launched in 2020. That year, more than half of respondents to an Ontario-based Daily Bread Food Bank survey indicated they could not afford both rent and food. Both challenges continue to be experienced by many Ontario tenants, and the R.I.S.E. program continues to be critical in preventing unnecessary eviction when life happens.

“A win-win-win:” How R.I.S.E. is structured for success

Skyline Living has structured R.I.S.E. so the criteria for application, and the process itself, are accessible and clear for all parties involved.

“We have helped people from all walks of life: moms, dads, couples, students, grandparents, and families big and small,” said BJ Santavy, Vice President, Skyline Living. “If the tenant is facing hardship, they are eligible to apply.”

R.I.S.E. has been intentionally built with the flexibility to address each tenant’s unique situation. The program has assisted with the following (and more):

• Rental payments

• Sourcing external resources in the tenant’s community

• Expenses related to other basic needs, such as medical bills, groceries, and children’s school supplies

• Coaching in life organizational skills, such as financial planning

• Finding more suitable living arrangements, and paying moving fees and rent, for tenants experiencing deteriorating health conditions, when it is no longer safe or sensible to live in their Skyline Living community

Trusted Advisors

Philip

Horst

Pond

Rowe

R.I.S.E. aims not only to get tenants back on their feet, but also to empower them with knowledge and resources for the future.

“We’ve discovered that many evictions are the result of excessive hardship rather than misconduct, and that many families are falling between the cracks,” said R. Jason Ashdown, Co-Founder & Chief Sustainability Officer, Skyline Group of Companies. “Safe and secure housing is much more than a fundamental necessity. Housing stability is inextricably linked to good mental health. If given some time and compassion, these evictions can be avoided, with substantial benefit to both the tenant and rental provider.”

In 2021, R.I.S.E. helped 420 tenants stay in their homes, and in the first six months of 2022 alone, it has provided more than $32,000 in financial relief to tenants in need, as well as a helping hand to guide tenants to community resources and supports to ensure their long-term success.

In turn, Skyline Living reduced expenses on eviction and legal fees while avoiding the costs of vacancy, turnover, and bad debt. Every dollar invested in R.I.S.E. returns tenfold to Skyline Living in operational cost reductions - not to mention good will.

“We knew that investing in our tenants would be a ‘win-win-win' for our customers, for our business, and for our industry,” Ashdown remarked. “We have seen even more opportunity than we could ever have anticipated.”

Skyline Living believes that R.I.S.E. signifies a change in philosophy and direction for its company as a rental housing provider. It made significant operational changes to ensure the program’s success. For example, in 2021, its Customer Service and Landlord-Tenant teams joined forces to become its Tenant Support Team. Its internal customer service, collections, and paralegal departments also changed gears to assist with the program.

“The program has had an enormously positive effect on our staff,” said Santavy. “They are proud to work for a company that has taken substantial measures to assist their customers and has shifted its internal processes accordingly. Collectively, Skyline Living has a mindset of resolution, not eviction. Even in circumstances where eviction cannot be avoided and is the only option, we practice compassion and strive to ensure the tenant has access to community support.”

A ripple effect of positive change

The program’s positive impact goes even further: it aims to change the perception of rental housing providers.

“We are still a work in progress, but we feel we have started something that might have a huge ripple effect of positive change that goes well beyond our tenants,” said Ashdown.

He noted that R.I.S.E. represents a program model that he believes can be replicated in some fashion across the Ontario rental housing industry.

“For any industry peers who are thinking about starting similar programs, my advice is to start now and take advantage of the resources you have because there will never be a perfect time to get started,” he said.

Santavy added, “R.I.S.E. demonstrates what we have always believed: that both rental housing providers and tenants desire everyone to have safe, secure, and longterm housing. We’re showing our tenants that we have their backs.”

Through R.I.S.E., Skyline Living hopes not only to create a precedent in the Ontario rental housing industry, but also to help permanently eliminate the narrative of negative landlord-tenant interactions.

Learn more about Skyline Living’s R.I.S.E. program at RISE.SkylineLiving.ca

SMALL LANDLORD, BIG PROBLEMS

By Paul Cappa, Paralegal/Partner, Cohen Highley LLP Lawyers

AGI disclosure and the sale of a multi-residential property

heated multi-residential real estate market has seen a large number of smaller properties change hands over the past several years. There has also been an influx of first-time owners into this segment of the market, resulting in some hard lessons and growing pains for less experienced investors.

Prior to the onset of the COVID-19 pandemic in 2020, the Landlord and Tenant Board (LTB) was dealing with significant staff shortages, notably amongst Tribunal Board Members. Repeated government shutdowns during the height of COVID-19, coupled with restrictions in providing timely service prior to COVID-19, has contributed to the now lengthy delays in adjudicating Above Guideline Rent Increase applications (AGIs) at the LTB.

Many of these pending, unresolved AGIs were submitted to the LTB for properties that have since been sold. In some cases, vendors have forgotten about their AGI application or assumed that it was discontinued because they have not received any communication from the LTB. Likewise, purchasers, realtors, and lawyers have failed to conduct their due diligence to understand or confirm the existence of a pending AGI for the property, or a maturing AGI Order that may result in a rent decrease upon expiry of the useful life period.

The

"To avoid litigation and the prospect of having to fork over rent rebates to tenants for an abandoned AGI, vendors should ensure the AGI details are disclosed to the purchaser and a transition plan is in place to see the application through to conclusion."

Negotiating the sale of a multi-residential property requires all parties to be vigilant to avoid unintended consequences and to protect the income stream of the investment. This likely starts with a discussion of whether the rent roll currently includes unapproved increases sought in the AGI application. To avoid litigation and the prospect of having to fork over rent rebates to tenants for an abandoned AGI, vendors should ensure the AGI details are disclosed to the purchaser and a transition plan is in place to see the application through to conclusion.

Purchasers should seek details of:

• The effective date of the increase sought

• The projected increase

• Whether notices of rent increase have been given or need to be given to implement the projected increase (particularly where the application may result in a multi-year phased increase)

• Who will be responsible for serving the hearing documents, attending the hearing, and presenting the application, and any legal costs associated with the process

• How rent reconciliations will be credited/debited after the AGI application has been approved

Purchasers should also inquire about the status of any recently approved AGI Orders for the property to determine if there are increases yet to be implemented. If the AGI Order contains a capital expenditure increase, then the cost no longer borne provisions of the legislation apply. This could result in a substantial rent reduction affecting existing rents when the Order expires.

By providing proper disclosure and undertaking due diligence, small landlords and new investors can avoid many of the pitfalls that can potentially affect the bottom line of their investment.

FAST-TRACK ENERGY EFFICIENCY WITH INCENTIVES

By Jennifer Cittadini, Program Advisor, Enbridge Gas Inc.

Did you know about 30 per cent of building energy use is lost through inefficient equipment or operations? With free expert advice and incentives for high-efficiency upgrades, Enbridge Gas makes it easy to reduce energy waste and find immediate and ongoing savings—potentially millions of dollars across a portfolio of buildings over time. Beyond saving energy and money, these high-efficiency upgrades will help to boost building performance and resident comfort.

Expert help at no cost to you

Our team of experienced Energy Solutions Advisors will work with you, at no cost, to help you find opportunities to save energy and improve the efficiency of your building(s). They’ll also pre-qualify you for the incentive program best suited to your building needs.

Lasting benefits, easy upgrades

• Reduce energy consumption and costs

• Minimize your carbon footprint

• Boost reserve for other improvements

• Reduce capital costs with incentives

• Enhance the comfort and well-being of residents

Two paths to energy savings

1. Get free upgrades and incentives up to $200,000

If your building qualifies for the Affordable Multi-Family Housing program, you could receive free in-suite upgrades such as low-flow showerheads and heat reflector panels that instantly save energy. Incentives up to $200,000 are also available for capital efficiency upgrades to heating and ventilation equipment.

2. Get incentives to cover up to 50 per cent of incremental costs for efficiency upgrades

Condominium and apartment buildings may qualify for incentives to cover up to half of the cost of upgrades (up to a maximum of $100,000) to boilers, HVAC, building automation systems, and other energy-intensive equipment. Incentives are also available for energy audits and site assessments.

Call us today for no obligation, free consultation

Enbridge Gas makes it easy—with free expert advice and incentives on make-up air units, boilers, water heaters, and more. Contact an Enbridge Gas Energy Solutions Advisor at energyservices@enbridge.com to get started today.

SELF-REGULATION VS. GOVERNMENT REGULATION –THE CHOICE IS OURS

By Ted Whitehead, Director of Certification, Federation of Rental-Housing Providers of Ontario

The time to act is now

This edition’s CRBP article follows a topic and theme I have written about and exposed for several years now – self-regulation vs. increased government regulation. The theme is a simple one: “We either learn as industry to effectively self-regulate ourselves or we will continue to accept more and more increased regulation from all levels of government.”

I am watching with growing interest, and with great concern, the increased level of municipal government interference and regulatory control on landlords. This is no more apparent than in Ontario, where I have observed several major municipalities

considering adopting some version of Toronto’s RentSafeTO program (currently $11.46 plus taxes per unit). At the time of writing this editorial piece, the municipality of Mississauga has approved a pilot program and is implementing a fully adopted version of the RentSafeTO program ($18.95 plus taxes per unit) while the municipality of London narrowly voted down doing the same thing last month. It should also be noted that, in the last two to three years, the cities of Ottawa, Hamilton, St. Catherine’s, Windsor, Kitchener/Waterloo, and others have considered adopting some form of the RentSafeTO model. It is not a stretch to believe that our industry is on the verge of municipal

government regulatory crisis; as we all know, “landlords” are easy prey. Most certainly, adopting self-regulation and becoming a member of the Canadian Certified Rental program ($6.00 per unit plus appropriate taxes) would be an enormous step in the right direction, but only if the bulk of the industry as a whole adopts this approach.

What is so disconcerting is that our industry is much more than what the term “landlord” conjures in the court of public opinion. We provide quality rental housing to literally millions of Canadians, and build and foster thousands of safe, healthy apartment communities across Ontario.

So my message to all industry members is a simple one:

If we do not learn how to effectively self-regulate ourselves, then we are in for a world of increased government regulation that will impact every aspect of our business.

There is still time now for us to unite and act!

Whether you decide to rally around becoming members of the Canadian Certified Rental BuildingTM program or have your local association create another self-regulatory regime, please do something now before there is no longer the opportunity to do so. The costs of increased government regulation will always far outweigh the costs of selfregulation!

For more information on the Certified Rental Building™️ program, please contact Ted Whitehead – twhitehead@frpo.org

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MORE DOWNS THAN UPS IN MULTIRESIDENTIAL PROPERTIES’ ELEVATORS

By David Gargaro

Elevator outages are a cause for concern for tenants and owners of multi-residential properties. On a provincial level, it’s not a huge issue, as most elevators are serviced regularly and operate safely. There are more than 60,000 elevators in the province, and only a small percentage of them are out of service at any given time.

However, the number of out-of-service elevators is rising. Elevator inspectors have been on strike since July 21. This means the timely inspection of elevators by the Technical Standards and Safety Authority (TSSA) is in jeopardy, and elevators will be out of service for longer than usual if they are required to be inspected by the TSSA. As the strike stretches on, the situation will worsen.

The TSSA is in negotiations with the Ontario Public Service Employees Union (OPSEU), which represents elevator inspectors, to end the strike. They have been negotiating since fall 2021 to finalize a first collective agreement. However, the elevator inspectors went on strike before the two sides could reach an agreement.

The impact of the strike

No elevator inspections means elevators will remain out of service in different situations. For example, before an elevator can be put back into service following repairs or upgrades, it must go through a TSSA inspection. Even if the work is complete, the elevator cannot be turned over to the owner and put back to use until it passes inspection. The same applies if there’s fire or water damage, or if an injury occurs on an elevator. Elevators must be inspected and approved by the TSSA before they can return to service.

The TSSA must also inspect new elevators before they can be used by the public. If that does not happen, the building cannot have occupancy. This means buildings will be completed but people cannot move into them.

“When a building is being sold, it is a requirement that all TSSA directives are completed,” said Phil Staite, President, Quality Allied Elevator. “The directives might be completed but the TSSA directives are not cleared because inspectors are not available. This may hold up the sale of the building.”

Most multi-residential buildings in Ontario were built in the 1970s and 1980s (or earlier). As such, elevator equipment will wear out and break down more often. If the equipment is not repaired or upgraded, it will be less reliable and require more maintenance, which also means more inspections. As a result, tenants and building owners will see elevator outages occurring more often and lasting longer than usual.

“Many of these buildings were also under-elevated,” said Staite. “Not only do you have old equipment and old technology, you don’t have enough elevators. If you have one elevator out of service, it can cause a lot of issues in the building.”

How does the strike affect the TSSA?

The TSSA’s non-inspection safety services, including engineering, examinations, registration, certification, and licensing, are not affected by the strike. However, it will not be providing expedited and rush engineering reviews.

The TSSA is still providing inspection safety services for critical infrastructure, such as hospitals and long-term care homes. They are using non-union employees (i.e., supervisors who have the required training, certification, and experience) to perform elevator inspections while the inspectors are on strike. They have also hired certified contractors to perform inspections and maintain its safety mandate.

“We want to be clear – the strike has not impacted the nature of our safety inspections,” said Alexandra Campbell, TSSA spokesperson. “TSSA has implemented a comprehensive contingency plan that prioritizes safety. All required inspections are being performed by qualified individuals.”

The TSSA is continuing to negotiate with OFSEU to reach a resolution to the strike. The association has presented a contract and remains available to answer the union’s questions. At the time of this writing, there has been no change in either party’s position.

What should elevator owners do?

Owners of devices, sites, and businesses regulated under the TSSA (which includes elevators) are responsible for the safe maintenance and operation of these devices. They are also responsible for immediately reporting elevator-related incidents to the TSSA. Elevator owners can be held liable for any injuries that occur on their elevators, so they should err on the side of caution and keep elevators out of service until they have been repaired and inspected.

“If the owner has an elevator issue, they should call their elevator maintenance provider, as they will fix the issue,” said Staite. “If there is water damage or an injury, the TSSA still needs to be notified as before. If the TSSA has to come to inspect the elevator before it goes back into service, the elevator may be out of service for much longer. Wait time for the TSSA to inspect an elevator and have it allowed to be put back in service for use by the public is the major consequence of the strike to the building owner.”

To report an elevator-related incident, elevator owners can call the TSSA at 1-877-682-8772 (Option 1) to reach the Spills Action Centre, which is open 24 hours a day, seven days a week. To schedule an inspection for a critical business need, they can contact the TSSA’s Inspection Scheduling Team by telephone at 1-833-937-8772 or via email at EDADInspection@tssa.org

"Elevator inspectors have been on strike since July 21. This means the timely inspection of elevators by the TSSA is in jeopardy, and elevators will be out of service for longer than usual if they are required to be inspected by the TSSA. As the strike stretches on, the situation will worsen."

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